Monte Paschi Takes Over Mediobanca to Reshape Italian Banking

(Bloomberg) -Banca Monte Dei Paschi di Siena Spa has provided the majority stake in Mediobanca SPA, and once again, an uninterrupted € 16 billion inheritance to reshape Italian financing.

According to a file confirming a Bloomberg news report on Monday, Mediobanca investors gave 62.3% of the shares to Monte Paschi. This will give Monte Paschi a majority stake after officially receiving these shares.

At the closing of Monday to Sunday, an agreement worth almost € 16 billion ($ 18.8 billion) will create the third largest lenders according to Italy’s assets. Italian Prime Minister Giorgia Meloni’s longer passion for a long -standing passion is to establish a new large bank that can compete with Itesa Sanpaolo Spa and Unicredit Spa.

If completed, the Italian financial sector will also mark the first large -scale agreement, as the wave of merger and purchasing begins about a year ago. Unicredit, a few small inheritances were passed while pursuing Banco BPM SPA.

The Purchase of Mediobanca said, “It creates a new competitiveness” to be listed among the leaders in the Italian banking sector ”.

The inheritance of Italy’s largest independent investment bank limits a striking return, which is still considered the oldest bank in the world, which is still in operation for Monte Paschi.

Founded in 1472, Monte Paschi has recently emerged from a deep restructuring that has recently lasted ten years. Since 2008, a bad -time acquisition just before the financial crisis years resulted in nationalization in 2017, pointing to the beginning of the problems of the bank.

Along the way, investors have injected more than 14 billion € fresh funds. This was added to the capital of approximately 7 billion € provided by various Italian administrations.

However, since his CEO Luigi Lovaglio took over in 2022, increasing interest rates and deep restructuring increased profitability and increased the share price and allowed Rome to sell its share.

The rising share gave Monte Paschi a currency to start the transfer offer for Mediobanca, a market valuation of about 70% higher.

Monte Paschi developed his offer by adding a cash at the beginning of this month and reduced the minimum acceptance threshold to 35%.

The new bid is equivalent to a market value of about € 16 billion, worth € 19,56 per share in Mediobanca market. This is compared with the market price of 19.48 € per share.

Lovaglio said Monte Paschi will benefit from extended operations in asset collection, private banking, investment banking and insurance. The lender will represent approximately 60% of the combined organization in terms of customer loans and customer assets.

Medeobanca’s leadership has repeatedly rejected the approach by saying that the shareholders had destroyed value and that the shareholders were better if the company remains independent.

As the tender proposal ended at the closing of Sunday on Monday to September 22, September 22, Monte Paschi’s grip may increase even more. The Siena -based lent, who dedicated himself to buying tender shares.

Monte Paschi has previously said that if he had achieved at least 35% in Mediobanca as successful, a clear majority will have more impact. Furthermore, the lender will allow the reinforcement of Mediobanca to reinforce and increase the capital by accelerating its use up to € 2.9 billion in postponed tax assets.

Monte Paschi, a press release on Monday, said that all the conditions of his proposal have not yet been met.

The agreement closes the part about Medeobanca’s role in Italy’s largest independent investment bank, and will probably mark the end of Alberto Nagel’s time on top of the company. He joined the bank in 1991 and took his current role in 2008 and made it one of the longest service in European banking.

Bloomberg News is preparing to resign with the rest of the lender as Nagel approached Monte Paschi’s control of the opponent. There is no final decision by Nagel or the Board of Directors, and people are familiar with the issue, that the situation can change yet.

-Help from Antonyio Vanuzzo.

(Updates with Monte Paschi’s press release in the fifth paragraph.)

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